Rosetta Stone (NYS: RST) is expected to report Q4 earnings around Feb. 21. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Rosetta Stone's revenues will compress -0.6% and EPS will turn positive
The average estimate for revenue is $80.1 million. On the bottom line, the average EPS estimate is $0.15.
Last quarter, Rosetta Stone booked revenue of $64.3 million. GAAP reported sales were 0.1% higher than the prior-year quarter's $64.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at -$0.08. GAAP EPS were -$1.58 for Q3 compared to -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 82.6%, 20 basis points better than the prior-year quarter. Operating margin was -5.7%, 370 basis points better than the prior-year quarter. Net margin was -51.9%, 5,010 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $274.6 million. The average EPS estimate is -$0.59.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 665 members out of 753 rating the stock outperform, and 88 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 148 give Rosetta Stone a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Stone is hold, with an average price target of $12.67.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Rosetta Stone makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.
Add Rosetta Stone to My Watchlist.
The article Rosetta Stone's Upcoming Earnings: What You Need To Know originally appeared on Fool.com.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Rosetta Stone. The Motley Fool owns shares of Rosetta Stone. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.